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  4. Rapid Fire Marketing, Inc. (RFMK) Message Board

Scout, thx, I agree, good point, the risk/reward h

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Post# of 11899
Posted On: 11/12/2012 6:31:13 PM
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Posted By: EliteYoda
Re: scout #8006

Scout, thx, I agree, good point, the risk/reward here in RFMK is very good IMO. The par value for the stock is $0.001 and we are about 1/10th of a cent above that level, not even double the par value, which IMO makes for a rather decent risk vs reward scenario for investors at the current levels. The market cap is just over $2M and most of these speculative penny stocks typically trade at a market P/E of about 50 once it is known for sure that their product is selling out in the market place. This suggests that the market expects annual revenues from RFMK of about $40k which equates to about 400 units sold; that is 100 units per quarter or about 30 units a month, 1 unit sold per day. They have about 20,000 units coming soon so if they only sold 400 units in the next 12 months, then I imagine it would be quite a dissapointment for the company but it appears the market would have priced in the exact expected revenues in that scenario. It seems that the market is pricing in a rather dissapointing ability or inability to sell units, at a rather low expectation of the company only being able to sell roughly 2% of the upcoming inventory. If one believes that the market expectations are too low, if one believes that the company can sell more than one unit per day and better than 2% of their upcoming inventory in the next 12 months then the current share price may offer an opportunity to potential investors. Just based upon my own personal judgements and expectations of the potential for sales in the next 12 months, I think it is actually quite possible that RFMK could sell the entire inventory of 20,000 in just two quarters (6 months) which would mean 100X the revenue expectations the market is currently expecting. Perhaps I am overly bullish and naive but just my opinions.


GLTA


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